Joining the ranks of reverse mortgage securities issuers, Moneyhouse has received approval from Ginnie Mae to issue HECM-backed mortgage securities (HMBS).
The San Juan, Puerto Rico-based lender will be allowed to pool and securitize reverse mortgages and retain the servicing of the loans under the new approval. It is approved until the Ginnie Mae I and Ginnie Mae II programs as well as HMBS.
The issuer status has long been anticipated to extend Moneyhouse’s capabilities as a mortgage lender across its retail and wholesale channels.
“We have had our sights set on getting approved by Ginnie Mae for quite some time,” said David R. Levis, Moneyhouse CEO, in a press release. “This approval expands Moneyhouse’s capabilities as a mortgage lender, and allows us to better serve our retail and wholesale customers. Customer support and retention is at the core of our business plan and becoming an approved Ginnie Mae issuer will allow Moneyhouse to assist our borrowers over the life of their loan.”
Currently, Ginnie Mae has 368 approved single-family issuers; 200 of which are active. Across its HMBS program, Ginnie Mae counts 23 approved issuers, of which 12 are active. The Department of Housing and Urban Development and Ginnie Mae recently announced they will be implementing new requirements among issuers including including net worth minimums for forward lenders and minimum time frames for issuing in order to maintain issuer status, or “Demonstrated Participation Requirements.”
Moneyhouse has risen as a family-owned mortgage business founded in 1997 to become the 12th lender in the country by volume. It counts seven branches in Puerto Rico, as well as a wholesale branch in Tulsa, Oklahoma and a retail branch in Orlando, Florida. Since 2007, the company has closed more than 4,500 reverse mortgage loans.
Written by Elizabeth Ecker